Wall Street’s losing streak deepens as new tariffs from Trump and retaliatory measures from China impact exports and consumer confidence. Major stock indices posted premarket losses, while corporate results indicate growing pressure from tariff costs. Overall, anxiety over trade policies continues to influence market behavior, leading to declines in both U.S. and global markets.
On February 26, 2025, the stock market experienced ongoing turmoil as Wall Street’s decline continued, exacerbated by President Trump’s new tariffs on Chinese imports, which rose from 10% to 20%. In retaliation, China imposed tariffs of up to 15% on numerous U.S. agricultural exports, increasing restrictions on several dozen American companies. This escalating trade conflict has investors anxious about the financial ramifications in both nations.
As the market opened, Wall Street appeared weak with significant premarket trading losses in major indices: S&P 500 and Nasdaq futures fell by 0.6%, while the Dow Jones Industrial Average dropped by 0.3%. The mounting uncertainty led to a significant selloff on the previous trading day, highlighting growing unrest regarding trade relations.
Francis Lun, CEO of Geo Securities, expressed concern about the trade situation, stating, “I don’t think China will buy any more U.S. farm products. The orders will go to South America. I think all in all, it’s a lose-lose situation. Nobody gains anything.” This perspective reflects fears that retaliation will have lasting effects on U.S. exports.
Corporate earnings are also being affected, as seen with Target’s recent reporting of lower sales and profits during the key holiday quarter, despite a modest beat of expectations. The retailer warned of “meaningful pressure” on profits in the upcoming quarter due to ongoing tariffs and related costs, which could impact consumer sentiment.
In contrast, Walgreens saw a surge of 4.8% in early trading on news of a potential buyout by Sycamore Partners, with the deal rumored to be around $10 billion. This development indicates that some sectors may still find themselves active in a shifting market landscape amid broader investor concerns.
After a period of optimism post-election, marked by significant stock market rallies, recent losses have diminished the S&P 500’s gain from over 6% to just above 1%. The market’s downward trajectory followed softer economic reports and increased consumer pessimism regarding inflation.
In European markets, indices also experienced declines, with Germany’s DAX down by 2.3%, France’s CAC 40 losing 1.4%, and the UK’s FTSE 100 falling by 0.5%. Meanwhile, Asian markets mirrored this trend, with Japan’s Nikkei 225 dropping 1.2% and other indices in the region following suit, reflecting widespread global apprehension regarding trade stability.
The stock market is under significant pressure due to escalating trade tensions between the U.S. and China, highlighted by the imposition of higher tariffs on both sides. Companies are reporting mixed earnings, with growing concerns over profit margins as tariffs begin to take their toll. As the market responds to these economic indicators, negative sentiment prevails across global exchanges.
Original Source: apnews.com
